Twitter co-founder Jack Dorsey is facing a fierce backlash after announcing that payments company Block will cut more than 4,000 jobs—nearly half its workforce—as it pivots toward an “intelligence‑native” future built around artificial intelligence.
In a lengthy note shared on X, the Block co‑founder said the company will shrink from more than 10,000 employees to just under 6,000, a move he described as “one of the hardest decisions in the history of our company.” The announcement triggered sharp criticism online, even as investors sent Block’s share price soaring in after‑hours trading.
Newsweek reached out to Block via email for comment.
Why It Matters
The scale of the layoffs—and Dorsey’s explicit framing of AI as a driver—has intensified an already heated debate about whether artificial intelligence is accelerating job losses across the tech sector.
While Dorsey insisted Block is “not in trouble” and pointed to growing gross profit and improving profitability, critics said the decision highlights a shift in how markets increasingly reward mass layoffs as a sign of efficiency rather than distress. Block’s stock jumped by roughly 25 percent following the announcement.
The announcement comes after another layoff round at Block in March 2025, where Dorsey announced the loss of 900 jobs in a lowercase email where he wrote: “hi all. today we’ll be making some org changes, including eliminating roles and beginning the consultation process in countries where required. i want to give you all the straight facts.”
What to Know
In his statement, Dorsey said more than 4,000 employees will either be asked to leave or enter consultation. Affected workers will receive 20 weeks of pay plus one additional week per year of tenure, equity vesting through the end of May, six months of health care, their corporate devices, and $5,000 in transition support. He said comparable packages will be offered outside the U.S., adjusted for local requirements.
Dorsey stressed that the cuts were not driven by financial weakness but by what he described as a fundamental shift in how companies can operate using intelligence tools. Smaller, flatter teams paired with AI, he wrote, are already changing “what it means to build and run a company,” and that shift is accelerating.
Rather than reducing headcount gradually, Dorsey said he chose a single, deep round of layoffs to avoid repeated cuts that could damage morale and trust. He acknowledged the risk of moving too fast but said the company had reviewed and “pressure‑tested” the decision from multiple angles.
Dorsey also said Block would keep internal communication channels open through Thursday evening to allow employees to say goodbye and announced a live video session to thank staff, calling the approach “awkward and human” rather than “efficient and cold.”
Jack Dorsey’s Statement In Full
In the post on X, Dorsey wrote:
we’re making @blocks smaller today. here’s my note to the company.
####today we’re making one of the hardest decisions in the history of our company: we’re reducing our organization by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are being asked to leave or entering into consultation. i’ll be straight about what’s happening, why, and what it means for everyone.
first off, if you’re one of the people affected, you’ll receive your salary for 20 weeks + 1 week per year of tenure, equity vested through the end of may, 6 months of health care, your corporate devices, and $5,000 to put toward whatever you need to help you in this transition (if you’re outside the U.S. you’ll receive similar support but exact details are going to vary based on local requirements). i want you to know that before anything else. everyone will be notified today, whether you’re being asked to leave, entering consultation, or asked to stay.
we’re not making this decision because we’re in trouble. our business is strong. gross profit continues to grow, we continue to serve more and more customers, and profitability is improving. but something has changed. we’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company. and that’s accelerating rapidly.
i had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. i chose the latter. repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead. i’d rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome. a smaller company also gives us the space to grow our business the right way, on our own terms, instead of constantly reacting to market pressures.
a decision at this scale carries risk. but so does standing still. we’ve done a full review to determine the roles and people we require to reliably grow the business from here, and we’ve pressure-tested those decisions from multiple angles. i accept that we may have gotten some of them wrong, and we’ve built in flexibility to account for that, and do the right thing for our customers. we’re not going to just disappear people from slack and email and pretend they were never here. communication channels will stay open through thursday evening (pacific) so everyone can say goodbye properly, and share whatever you wish. i’ll also be hosting a live video session to thank everyone at 3:35pm pacific. i know doing it this way might feel awkward. i’d rather it feel awkward and human than efficient and cold.
to those of you leaving…i’m grateful for you, and i’m sorry to put you through this. you built what this company is today. that’s a fact that i’ll honor forever. this decision is not a reflection of what you contributed. you will be a great contributor to any organization going forward.
to those staying…i made this decision, and i’ll own it. what i’m asking of you is to build with me. we’re going to build this company with intelligence at the core of everything we do. how we work, how we create, how we serve our customers. our customers will feel this shift too, and we’re going to help them navigate it: towards a future where they can build their own features directly, composed of our capabilities and served through our interfaces. that’s what i’m focused on now. expect a note from me tomorrow.
jack
Online Backlash and AI Fears
The announcement prompted a wave of criticism on social media, with many users sharing concern about the rise of AI and what it means for the future of many jobs.
One user, posting under the handle @akshaymarch7, wrote that markets were now “celebrating layoffs as a positive sign, as if human employees are liabilities for companies.” Another, @erikschutzler, said bluntly: “AI is taking our jobs,” calling for government intervention.
Others framed the move as evidence that large corporations are becoming obsolete. “The future is small, bespoke companies,” wrote @travisthomson_, encouraging workers to start their own businesses. User Scott Santens said the layoffs showed that universal basic income “can’t wait any longer.”
What Happens Next
Dorsey said Block will now rebuild with “intelligence at the core of everything we do,” from how teams work internally to how customers use its products.
He signaled that customers will increasingly be able to build features themselves using Block’s tools and interfaces, with more detail promised in a follow‑up note.
For employees who remain, Dorsey said he would take full responsibility for the decision and asked them to “build with me.” For those leaving, he emphasized that the cuts were not a reflection of performance, writing: “You built what this company is today.”
As tech companies across the industry race to integrate AI more deeply into their operations, Block’s dramatic downsizing—and the market’s enthusiastic response—may serve as a bellwether for how far and how fast those changes could go.
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